Social Care Bill will affect homeowners in the North and Midlands more

People in the North East and the Midlands will be disproportionately affected by the Social Care Cap, according to analysis by the I Paper.

The Social Care Cap, which was voted in this week, is an amendment to the Government’s social care plans for England. The cap was met with disapproval over claims it would disproportionately affect those who had fewer assets.

It was decided that the cap – £86,000 for lifetime care – did not allow for means-tested payments to count towards the overall care cap. Therefore, those who have assets of up to £100,000 will have to contribute their own money towards the cap, even if gaining financial aid, whilst wealthier people with assets over £100,000 will not need to spend as much of their own assets.

Due to the difference in house prices between the North and the South, those with homes in Northern areas such as the Northeast, Northwest and East Midlands will be subject to a greater proportion of their assets being lost when having to pay for their social care, than those in London and the Southeast.

Analysis of house prices from the I Paper revealed that those who own homes valued at the average price in the Northeast would lose over 50% (56%) of their assets to pay for the required £86,000 cap for care, whilst in London – where the cost of living and therefore care is higher – those who own a home valued at the average price would only lose 17% of their assets.

This figure only applies to those who own their own homes, and with no savings, but suggests the reason the amendment only precariously got voted in, with a slim majority of just 26, with over a dozen Conservative MPs voting against the plan.

Those with assets less than £20,000 will not have to pay anything from their assets towards care fees, however, those with between £20,000 and £100,000 in assets of whatever form, will get help from the council, although this will not qualify towards the cap, causing them to have to pay more than those with over £100,000 in assets who will not receive financial aid.

The amendment is set to go to the House of Lords, although many are still speaking out in criticism over the situation.